Lloyds Banking Group, which is 44 per cent owned by the UK taxpayer, today warned that soaring bad debt from legacy HBOS customers will contribute to a 50 per cent rise in loan book write-offs in 2009 compared to last year.
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Mr Daniels pointed out that its bad debts would be largely taken on by the taxpayer after Lloyds last month outlined an agreement to join the Government Asset Protection Scheme.
Under the scheme, Lloyds will transfer £260 billion worth of its most high risk loans to the Government. Lloyds will bear the first losses on loans up to £25 billion, with any further writedowns being taken by the taxpayer.
via Lloyds bad debts to soar 50% on HBOS loans – Times Online .
